What amount should eber report as amortization of the lease

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Reference no: EM132806550

Problem 1: On January 1, year 1, Eber Co. leased equipment under a four-year finance lease. The present value of the lease payments is $348,680. The equipment had a five-year economic life and a $20,000 guaranteed residual value. The equipment reverts to the lessor at the end of the lease. What amount should Eber report as amortization of the lease at December 31, year 1?

A. $65,736

B. $69,736

C. $82,170

D. $87,170

Reference no: EM132806550

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